Question

When Michael was born, his grandmother arranged to deposit $5000 in an account for him at...

When Michael was born, his grandmother arranged to deposit $5000 in an account for him at 8% annual interest compounded continuously. His grandmother plans to add to the account continuously at the rate of $1000 a year. How much will be in the account when Michael is 18?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Your grandmother deposited $1,000 into an account for you when you were born, and on each...
Your grandmother deposited $1,000 into an account for you when you were born, and on each birthday ever since. Interest rates are 4%. (8 pt.s) How much will be in the account on your 21st birthday? If your grandmother forgot to make a deposit when you turned 16, how much will be in the account when you turn 21? If a $100 zero coupon bond is sold with a 6 month maturity and a 3.5% yield, how much would it...
16) Stephen's grandmother deposited $100 in an investment account for him when he was born, 25...
16) Stephen's grandmother deposited $100 in an investment account for him when he was born, 25 years ago. The account is now worth $1,500. What was the average rate of return on the account? 17)The present value of $400 to be received at the end of 10 years, if the discount rate is 5%, is __ 18)The present value of $1,000 to be received at the end of five years, if the discount rate is 10%, is __ 19)What is...
When Jason Levy was born, his grandparents deposited $4,000 into a special account for Jason's college...
When Jason Levy was born, his grandparents deposited $4,000 into a special account for Jason's college education. The account earned 6.5% interest compounded daily. (a) How much will be in the account when Jason is 18? (b) If, on turning 18, Jason arranges for the monthly interest to be sent to him, how much will he receive each thirty-day month? (c) How much would be in the account when Jason turns 18 if his grandparents started Jason's savings account on...
Lauren plans to deposit $5000 into a bank account at the beginning of next month and...
Lauren plans to deposit $5000 into a bank account at the beginning of next month and $250/month into the same account at the end of that month and at the end of each subsequent month for the next 3 yr. If her bank pays interest at a rate of 5%/year compounded monthly, how much will Lauren have in her account at the end of 3 yr? (Assume she makes no withdrawals during the 3-yr period.  Round your answer to the nearest...
1. Charles invests his life savings of $4000 in an account that earns him an annual...
1. Charles invests his life savings of $4000 in an account that earns him an annual interest rate of 8%, compounded quarterly. How long will it take for this account to attain a value of $6000? show all work(Do not simplify your answer.) 2.  Henry invests $10,000 at an interest rate of 4%, compounded continuously. Prove that the amount of money Henry has after 25 years is more than $25,000, without using a calculator.
Michael plans to retire in 40 years. He is now trying to decide how much to...
Michael plans to retire in 40 years. He is now trying to decide how much to save for his retirement. He plans to deposit equal amount at the beginning of each month in a retirement account for 40 years, with his first saving made today. Assume the retirement account pays him an interest rate of 6.6% p.a., compounded monthly and Michael would like to have $2,000,000 in his retirement account 40 years later a)  How much will he have to deposit...
suppose $5000 is invested in an account at an annual interest rate of 6.8% compounded continuously....
suppose $5000 is invested in an account at an annual interest rate of 6.8% compounded continuously. How long (to the nearest tenth of a year) will it take the investment to double in size?
Bob deposits the amount of $105 in his bank account today, and plans to deposit the...
Bob deposits the amount of $105 in his bank account today, and plans to deposit the amount of $175 in the same account one year from today, and finally plans to deposit the amount of $225 in the same account two years from now. If the interest rate is 6.95%, how much will Bob have accumulated in his account three years from today?
1. John wishes to make a quarterly deposit into his savings account so that at the...
1. John wishes to make a quarterly deposit into his savings account so that at the end of 10 years the account balance will be $10,000. If the account earns 6% annual interest, compounded quarterly, how much should he deposit each quarter? 2. The maintenance on a machine is expected to be $155 at the end of the first year, then increasing by $35 each year for the next 7 years. What sum of money would need to be set...
In an effort to save money for early retirement, an environmental engineering colleague plans to deposit...
In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1500 every 3 months into a bank account. The first deposit will be made 3 months from today and the last deposit will be made at year 10. A) If the bank’s interest rate is 12% per year compounded continuously, how much will be in the account at the end of 10 years? (12.5 points) B) If the bank’s interest rate is still 12%...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT